Is Humanity ready for 100% digitalization?
Digitalization is one of the biggest challenges everywhere. It is claimed that the United States has already 60 percent digitalized. I'm not sure how far it is true but after digitalization comes the part where people start accepting cryptocurrencies and transact with crypto. But this is not good news for the governments. Governments usually expect things to be centralized so that they have more control over them. But are the citizens ready for this 100% digitalization? That's one of the biggest questions.
The Indian government is also trying hard to digitalize transactions. They promote UPI payments and bank transfers a lot so that everything can be easier to track. A few years back Indian government even introduced demonetization to reduce the black money flow among big stakes. Nobody knows how far it was successful but when we look at people who are in their daily wages, they had a serious hit and they suffered for a few days when demonetization happened. That's one way to say that Humanity is not ready.
There is this other group of people who keep saying that if we keep insisting more on digitalization, one fine day everything will be slowly digitalized. Today steps are being taken towards that goal.
Security is a big risk but blockchain solves it
When we think about digitalization, security is one of the biggest concerns. When all the data and transactions go online, it shouldn't be public as well as hackable. When a hacker compromises a big network, there is a high possibility that essential services can get affected and it can be a big pain to restore the services. Today we have advanced technologies that can take care of hacking but things are still vulnerable.
Here is where Blockchain can be of greater advantage to us. All the transactions that happen on a blockchain are difficult to hack. Some even claim that it is impossible to hack blockchain as it is decentralized and the consensus takes care of hacking and manipulating the data. Though to some extent that is true, not all use cases can be on blockchain towards 100% digitalization. Maybe in another 20 years down the line, we will progress more towards reaching 100% digitalization but the good thing is that we have already started taking some serious steps on that.
Small businesses that deal cash can get affected
Today big business people mostly deal with everything digitally. Even though many places have started accepting digital payments. For example, even a roadside vegetable vendor is giving us an option to pay digitally. But there are still places in India where digitalization has not touched. There are still places where people get very low income and that too is in the form of cash. They don't even know how to use mobile phones are very far from technologies.
These people are not tribal people but could be a citizen doing farming or something. It is hard to reach people like them with digitalization. This is where I think 100% digitalization is not a possibility yet. I know for a fact that things have changed a lot in the last few decades and it is still going to change further. But small business people who deal with cash every day should somehow find their way to accommodate these changes, otherwise, life can become difficult for them.
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A digital world will mean a wet dream come true for dictators and politicians because that will mean they can have whatever monetary policy they want at the push of the bottom. It could be implemented right away without giving people a chance to protest. Those who do could be quickly be deleted from the system, not to mention all transactions could be taxed at whatever rate the government says, not to forget they could also send money to their bodies much easily, the thing that corrupt politicians already do.